This search tool is the first of its kind to provide access to federal and state programs in a single, easy-to-use tool.  This tool provides one website to find financing programs that business owners can apply for. So many business owners are looking for financial information – this tool is really easy to use.

The loans and grants tool is simple. A business owner completes a survey of 15 questions and is presented with a list of loans, grants and venture capital programs.  The questions are simple, including some the following – no complex information required to use this:

• A dropdown with industry selection
• Nonprofit vs. for profit businesses
• Veteran status
• Minority owned businesses
• Location

After answering these questions, a list is generated of available loans and grants, which is being expanded continuously. This list includes the program title, which links the user to the website describing the program; the sponsoring agency; and a brief description of the program. Results are segmented by the type of financial assistance (loan, grant, venture capital).

Another very cool tool from the government is a permits tool called “Permit Me”. You can enter your business type and location and this tool generates a list of licenses and permits that you need in your locality for your specific business. The most common types of businesses are included but if you have a unique requirement, definitely send these folks a note and they will work to add other businesses and new content.

The need for financing is a critical and perennial concern for the owners of small businesses. Many government resources, including guides, exist for small businesses. Many of these tools explain how to shop for and obtain credit, how to maintain a good credit rating, how to dispute unfair credit transactions, and how to resolve billing errors. The Federal Reserve provides a good guide.

There are also free government resources for obtaining loans. Here are some types of loans:

• Short-term loans are usually for less than one year. They can provide interim working capital for a business temporarily in need of cash and are repaid in a lump sum when inventory or accounts receivable are converted into cash.
• Intermediate-term loans are often used for a business start-up, the purchase of new equipment, expansion, or an increase in working capital. The maturity dates range from one to three years.
• Long-term loans generally are made for major capital improvements, acquiring fixed assets, or business start-ups. The term of the loan runs for periods of three to five years and is usually based in part on the life of the asset financed. Repayment is usually made in monthly or quarterly installments.
• A line of credit offers you the ability to borrow money repeatedly, up to your credit limit, without having to reapply. A line of credit is particularly important to businesses that experience seasonal fluctuations. The lender generally will perform a review once a year, at which time the borrower is asked to provide updated financial statements.

There’s a great new tool that allows you to search by state for loans available. This tool allows you to input your business type and provides direct links to view their requirements.

Tips for Applying for Credit

Applying for commercial credit can be tedious – a lot of documentation that you need to prepare for including how you will spend the money. The following are several items to include in a business proposal:

• Business description – An overview of your business, products, customers, etc.
• Personal profile – Your resume
• Business plan - Your strategy over the next few years and how you will generate revenue to pay the loan
• Personal finances - A list of your assets/liabilities and credit references

For more detailed information, go to the Federal Reserve Board.

The good news is, there is a loan program from the SBA – called SBA Express – that makes the process of procuring a government loan quick, attractive, and accessible to small business owners looking to start-up or expand quickly.

The SBA Express program offers small businesses the chance to get an SBA-backed loan of up to $350,000 to start-up or expand operations. The “express” piece refers to that fact that your loan can be turned around in 36 hours.

Here’s what you need to know about SBA Express:

• Facts and Figures – SBA Express is available to existing or start-up for-profit businesses. You can borrow up to $350,000 or up to $25,000 in an unsecured loan. The maximum loan term is seven years; interest rates vary but must not exceed SBA maximums.
• Using Your Loan – You can use the loan to expand your business, purchase an existing business or obtain working capital. You can also use the loan to refinance existing business debt that is not already structured with reasonable terms and conditions. These are just general guidelines; the SBA has more specific guidance here.
• Eligibility and Getting Started – To apply for an SBA loan, start by getting a list of SBA lenders in your area. You can do this by contacting your local SBA District Office.

Other Options for Small Businesses

If you don’t need the level of financing offered by SBA Express, you may want to consider SBA Microloans. With a microloan you can borrow up to $35,000. The average loan, however, is a lot lower and can sometimes be in the hundreds of dollars, making this loan ideal for home-based businesses looking to set-up or expand.

If you’re still having trouble pinpointing the right loan for your business, consider using the new SBA Business Gateway program’s grants and loans tool or explore other loan options offered by the U.S. government.

It’s All in the Planning

Like the old saying goes, “poor planning equals poor performance”, and it’s the same with loans. If you really want to succeed in securing the right loan for your business, you must have a rock solid business plan.

You can find lots of planning resources here to help you document your businesses missions and goals and, of course, explain how you are going to get there.

Bringing on a self-employed contractor, instead of adding to direct employee headcount, can save a small business owner as much as 30 percent (per worker) in additional payroll taxes and benefits. It also introduces flexibility in hiring and firing, and can reduce strains on office space, training budgets, and more.

It all sounds fairly straightforward. However, in legal terms, the line between an independent contractor and an employee is not always clear. Your workers are not independent contractors because you say they are – and there can be costly tax implications if you get it wrong.

Before you engage an independent contractor make sure you are clear on the nature of your relationship and familiarize yourself with the government criteria used to judge the status of that worker.

Below are three steps you need to take to ensure regulatory compliance when hiring an independent contractor.

1. Understand the Significance of Worker Classification

Misclassifying workers is a common business slip-up. Take, for example, this scenario described in a great article by Minda Zetlin on Inc.com about common and costly mistakes that businesses make when it comes to classifying contractors

In the article, Zetlin poses a seemingly clear cut question:

“Which of these workers qualifies as an independent contractor?

a)      A newspaper carrier paid for each copy delivered

b)      A knife salesman who works on commission, rents his own office, and pays his own staff

c)       A consultant who works part time for a marketing firm”

I must admit, my immediate response was “all of the above” and, indeed, each of the workers described was labeled as a contractor by the company he or she worked for. However, only the third example is a true contractor. The first two examples are, in fact, legal company employees, as determined in court rulings.

It is critical that you, the employer, correctly determine whether the individuals providing services are employees or independent contractors. Generally, you must withhold income taxes, withhold and pay Social Security and Medicare taxes, and pay unemployment tax on wages paid to an employee. You do not generally have to withhold or pay any taxes on payments to independent contractors. Getting it wrong can be costly resulting in penalties and back-tax payments for the business owner.

2. Know the Regulatory Criteria Used to Judge Worker Status

Here is a basic definition from the IRS of what classifies a person as a contractor as opposed to an employee:

• Independent Contractor – The general rule is that an individual is an independent contractor if you, the person for whom the services are performed, have the right to control or direct only the result of the work and not the means and methods of accomplishing the result. Essentially independent contractors are considered to be in business for themselves. They take care of their own tax obligations and benefits.
• Employee – Anyone who performs services for you is your employee if you can control what will be done and how it will be done. This is so even when you give the employee freedom of action. What matters is that you have the right to control the details of how the services are performed.

If you are not clear whether a particular worker is an employee or an independent contractor, you should file Form SS-8, Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding with the IRS. They will review the facts and circumstances for you and make an official determination of the worker’s status.

The Small Business Administration also has more information that can help you determine the difference between an employee and a contractor.

3. Understand and Maintain Your Tax Obligations with Regards to Contractors

If you determine that you are using an independent contractor, you will need to file some paperwork with the IRS and pay the associated taxes. This means maintaining W-9 forms, contractor’s business licenses and certification of insurance, as well as filing a 1099-MISC form to report payments.

Other Resources

For more, check out helpful information from the government’s Hiring Independent Contractors resource page on Business.gov.

Whether you are the sole employee of your enterprise or you have several employees, incorporation can bring legal and tax protection for you as its owner, but can also bring tax burden, additional cost and paperwork. So it’s important to understand the implications of the business structure you choose for you business.

Outlined below are some of the benefits and disadvantages of incorporating your business as well as links to available government resources that can help you decide which business structure is right for you.

Benefits of Incorporation

Here are some of the benefits you can realize if you decide to incorporate your business:

• Personal liability protection – An incorporated company is an entirely separate entity from you and your personal assets. It affords protection from any personal liability for your business debts and obligations. For example, if someone sues your company they can only go after your company’s assets, not your own.
• Tax benefits - If you incorporate you may gain tax benefits, although only under certain circumstances. This is one area to discuss with an accountant, as the marginal tax rates for corporations with taxable incomes in some cases can be higher than those for an individual in the same scale. Read more about the tax implications of incorporating on Scott Allen’s Entrepreneurs’ blog here or get tax information from the government here.
• Corporate identity – Incorporating can give a great sense of credibility to your business.
• Raising capital - You can raise capital more easily through the sale of stock and securities if your business is incorporated.
• Unlimited life - Your corporation can have an indefinite life and outlive you. Do note that LLCs have a limited duration. Get more information on business structure differences from the SBA.

Disadvantages of Incorporation

Some of the disadvantages of incorporation, particularly for the small business owner, include:

• Paperwork – You’ll need to file two tax returns (one for you one for your business) and maintain detailed business records and formalities.
• Cost – The fees associated with initial incorporation and ongoing maintenance can put a strain on the small business owner. LLCs, however, can be a more economic alternative to full blown incorporation.
• Liability may not be as limited as you think – The main advantage of incorporating, limited liability, may be challenged by personal guarantees and/or credit agreements. When a corporation has insufficient assets to secure a loan, banks often insist on personal guarantees from the business owner. This can result in you being personally liable if your corporation can’t meet its repayment obligations.

How to Incorporate

If after careful planning and consideration you have chosen to incorporate your company, you will need to pursue the process directly with your state. In fact, you are required by law to register your business with the state whether you choose to be a corporation, non-profit, LLC, or a partnership.

Typically, if you only operate in one state, you should incorporate in that state. If you operate in multiple states, you should determine which state is the friendliest to corporations and incorporate in that state.

Find out how to incorporate in your chosen state by following the state-by-state links here.

Other Resources

Save the expense of calling your accountant and take advantage of the freely available expertise of a network of government and other small business experts over the Web, the phone or in person:

• Get help and advice from small business development experts.
• Understand the tax implications of incorporation or other business structure options.

But the savvy entrepreneur will know that lowering your tax burden should be approached as a long term strategy that goes to the heart of your business structure, investments, and work methods.

Below are some fundamental long term business strategies and approaches that can help reduce your small business tax liability.

1. Select the Right Business Structure

Deciding on the right business structure for your company is a daunting task, but do it right and you can realize significant tax benefits. Start by educating yourself on the available structuring options and what the ramifications are for your business.

Choosing the right structure is a highly individual process that hinges on your current and anticipated finances and taxes. So it’s critical that you avoid making assumptions about the perceived tax savings associated with the various types of structures.  What might work for your cousin’s business may not apply to yours.  Read my blog post – Should I Incorporate My Small Business? – for more help on this topic.

The Small Business Administration (SBA) also offers a very useful Guide to Choosing a Small Business Structure that outlines the available options.  But before you do anything, get expert advice – talk to an accountant or tax consultant before making your final decision. Once you have made your decision you’ll need to register your business.

2. Take Advantage of Tax Deductions for Energy Efficiency

Not only can you get grants and loans from the government for making green upgrades to your business, you can get tax deductions and credits too.

A tax credit can provide significant savings by reducing the amount of income tax you have to pay. Unlike a deduction, which reduces the amount of income subject to tax, a tax credit directly reduces the tax itself.

Learn more about federal tax credits and state tax incentives for energy efficiency. You can also access more tools and resources for maximizing tax savings with the government’s Green Business Guide.

This article from NFIB also offers some great tips and tricks for greening your business with the latest technology.

3. Hire Independent Contractors

Using independent contractors instead of hiring employees can reduce your payroll taxes, which can often add 20-30 percent to payroll costs per employee.

These self-managed freelancers can help meet small business project deadlines or support specialized tasks such as marketing, IT, accounting, etc. They can also free you from many administrative tasks such as withholding taxes, benefits, etc.

Be cautious, however, as business owners can face costly penalties for misclassifying employees as independent contractors, and the definitions are not as black and white as they may seem. Read my earlier blog post – Working with Independent Contractors: Understanding Tax Requirements - to ensure your business is complying with government regulations regarding the classification and use of independent contractors.

4. Know Your Deductibles

From operating a home-based business to using your personal vehicle for company use, small business tax write offs can have many benefits, including lowering your taxable gross income and earned income, which may increase your earned income credit.

Whether you prepare your own taxes or work with a tax professional, the right amount of planning will get you all the deductions you deserve. The government offers straightforward guidance as to which expenses qualify as tax deductible. You can also check out my blog post – Tax Deduction 101 for Small Business – for more tips.

5. Talk To Someone Who Can Help

Starting your own business and operating it to ensure the maximum amount of profit within the law is quite often not possible without the help of a tax specialist or business advisor. Of course, these professionals can be expensive.

There are alternatives and it’s a good idea to seek out some of the free tax guidance and support offered by Uncle Sam. The government’s Business Gateway venture, through its Business.gov Web site, has many resources available that can help small business owners understand how best to take advantage of tax-lowering strategies.

In addition, there are many in-person or online resources available to the small business owner. Here’s a summary of a few:

• In-person Resources – The SBA provides free and low-cost business counseling, training, and development help across the U.S. Find one near you here. You can also take advantage of SBA resource partners including SCORE business advisors.
• Online Resources – IRS Small Business and Self-Employed Tax Center. More than just forms and tax payment guidance, this portal includes video and audio online learning about business taxes.
• Workshops and Programs – The IRS offers online and in-person training and workshops to help small business owners understand their tax obligations. Learn more here.

Resources for Non-profits

1. The online Catalog of Federal Domestic Assistance gives you access to a database of all Federal programs available to nonprofit organizations and institutions. The CFDA Web Site is updated bi-weekly as new or updated program information is received from Federal agencies. This site also provides contact information for how to apply and guidelines to assist in filing for federal assistance.

1. Business.gov has a page dedicated to resources for non-profits. It includes links to valuable resources and acts as one single destination to find a host of tools and sites that can assist. It’s all organized in an easy-to-use format. So if you want a host of tools, bookmark this page.

1. The Office of Management and Budget assists by principles for determining costs of grants, contracts and other agreements with non-profit organizations. The Office of Management and Budget (OMB) is part of the Executive Office of the President.

1. Grants.gov is another source to find and apply for federal government grants. The U.S. Department of Health and Human Services is a managing partner for Grants.gov, an initiative that is having an unparalleled impact on the grant community. Learn more about Grants.gov and how to find and apply for a grant that is right for your non-profit business. Remember that you do not have to register with Grants.gov to find grant opportunities. However, once you are ready to apply for a grant, you will need to get registered. This process takes 3-5 business days. You can also register to receive email notifications of new grant postings.

1. The IRS also links to helpful information about points of intersection between charitable organizations and the IRS, including access to explanatory information and forms that an organization may need to file with the IRS.

1. The Federal Surplus Personal Property Donation Program enables certain nonfederal organizations to obtain personal property that the federal government no longer needs. The Federal Property and Administrative Services Act of 1949, as amended, provides for the transfer of surplus personal property to State Agencies for Surplus Property. To search for available surplus property, eligible agencies must go through their SASP to obtain a generic search-only access code and password to logon to GSAXcess®.

Filling out forms – often a barrage of forms – can feel like the necessary evil of business. Larger companies have different departments in charge of handling their own required forms. Small business owners, however, are solely responsible for all forms regarding every part of the business. This is often one of the most difficult, confusing, and frustrating parts of being a business owner.

Luckily, there’s help.

Forms.gov

For a big-picture perspective, there’s Forms.gov. This website is essentially a massive catalog of more than 5,000 federal forms, from tax forms to small-business forms to Federal Emergency Management Administration (FEMA) forms. Any kind of form you’re looking for is here.

As this is such a large catalog, it may be difficult to find what you’re looking for unless you know precisely the name and/or number of the form in question. For example, if you’re trying to find out what tax forms you are required to file, and you type “tax” in the search field on Forms.gov, you’ll get a listing of every tax form available – including the Currency Transaction Report for Casinos in Nevada. Maybe this what you were looking for. Probably not.

Forms.gov is a fantastic resource. And, there are other resources you can use as well.

Business.gov

The SBA’s Business.gov was originally meant to be a portal for federal forms. While it has evolved into a critical resource for small businesses, it’s still a great resource for forms.

For example, Business.gov has a main Government Forms Page. At the top of the page you’ll find a listing of the 12 most-requested forms by small-business owners as well as instructions on how to fill out these forms. This list includes the Employer Identification Number (EIN) application, W-2, W-4, and W-9 tax and withholding forms, quarterly and annual federal tax returns, and more. As you might imagine, most of these top 12 are tax forms.

Further down the page you’ll find forms and appropriate links relating to Loans and Financial Assistance, Government Contracting (8(a) forms), Occupational Health and Safety (OSHA record keeping forms), Patents, Trademark and Copyrights, and Taxes.

You’ll also find a range of resources regarding employment, from the I-9 Employment Eligibility Verification form to a link that provides a state-by-state list of new hire reporting centers, so employers can learn and understand their individual state requirements. You’ll also find a listing of forms for hiring foreign workers as well as migrant and seasonal agricultural workers.

Easing the Pain

As a business owner, required forms can be your nemesis. My advice: Face the enemy! It may be easier than you think to emerge victorious.

• Sole Proprietorship - A business owned and managed by one individual who is personally liable for all business debts and obligations.
• Partnership – Two or more people share ownership of a single business.
• Corporation – A legal entity owned by shareholders.
• S Corporation – A special type of corporation created through a tax election. An eligible domestic corporation can avoid double taxation (once to the shareholders and again to the corporation) by electing to be treated as an S corporation.
• Limited Liability Company (LLC) – A relatively new, hybrid-type of legal structure that provides the limited liability features of a corporation and the tax efficiencies and operational flexibility of a partnership
• Non-Profit – An organization engaged in activities of public or private interest that are motivated by making a profit. Some non-profits are exempt from paying federal taxes.
• Cooperative – A business or organization owned by and operated for the benefit of those using its services. Cooperatives are not a legal structure.

Don’t fret – your initial choice of a business type is not permanent. You can start out as one type and change to another. If this happens, just follow the IRS’s instructions for Changes in Ownership or Organization. You will also need to file new documents with your state government, may also need to obtain new business licenses (depending on your state).

The government can assist with determining which type is best for you. Check out this great resource page provided by the SBA that can help you decide which of the above business types is right for your needs. The site also has information to help you get started. Believe it or not, the government provides tools to help you name your business, choose a location, register your business by state (many states have specific filing requirements for individual businesses), etc. We’ll discuss these basics in a little more detail below.

What’s in a Name?

There is more to naming your business than just coming up with something that sounds good or something that rhymes with your cat’s nickname. Thought needs to be given to state and local requirements for using “assumed” trade names and making sure you don’t accidentally steal someone else’s business name. The following guides provide information on selecting and registering a business name:

• How to name a business: Your business’ name will shape its identity. Have several options and research your ideas to make sure the name is legally available. Use a name database. The Thomas Register is a free, unregistered trademark database. Federally registered trademarks can be found on the U.S. Patent and Trademark Office’s database.
• Business name registration: The legal name of a business is the name of the person or entity that owns a business. If you are the sole owner, its legal name is your full name. If your business is a partnership, the legal name is the name given in your partnership agreement or the last names of the partners. For limited liability corporations (LLCs) and corporations, the business’ legal name is the one that was registered with the state government. Your business’ legal name is required on all government forms and applications, including your application for employer tax IDs, licenses and permits. However, if you want to open a shop or sell your products under a different name, then you may have to file a “fictitious name” registration form with your government agency. This chart provides the requirements for fictitious name filing in all 50 states and territories.

Location, location, location

Choosing the right location for your business can be a major factor in its success or failure. A good location may allow a struggling business to survive, but a weak location could mean trouble for even a very well-run business. Make sure you know all the legal restrictions of your place of business.

Home office energy efficiency

We all know times are tough right now and it’s not only consumers who are pinching pennies. Even businesses are tightening their belts. With this in mind, sometimes, being energy efficient means doing our part to help the environment but it also means saving ourselves – and our home businesses – valuable dollars. As usual, there are government resources available to provide direction and assistance to small and home business owners.

Energy Star

Virtually any small or home business can improve its energy efficiency easily and cost-effectively, using the numerous resources that are available both from Energy Star and a wide variety of other organizations. Energy Star is a joint program of the U.S. Environmental Protection Agency and the U.S. Department of Energy helping us all save money and protect the environment through energy efficient products and practices. Energy Star rates and recommends products that can save you – even putting a sticker on these products so you recognize them. But check out the site for lists of products, great tips, etc.

Home Business Energy Savings & Free Government Tools

Saving energy for your home-based business may seem like a challenge, but there are some simple, no-cost or low-cost steps you can take to reduce your energy bills by as much as 30%. Here are things you can do for free to save your home business money immediately:

• Turn up or turn back the thermostat during unoccupied times.
• Consider buying a programmable thermostat.
• Turn off lights or office equipment at night and over the weekend.
• Take advantage of daylight.
• Use e-mail instead for faxes and paper memos or letters.
• Disconnect unnecessary equipment.

There’s also a very easy, web-based energy efficiency tool. The Home Energy Saver is designed to help identify the best ways to save energy and find the resources to make the savings happen. The project is sponsored by the U.S. Department of Energy (DOE), as part of the national ENERGY STAR Program (mentioned above), for improving energy efficiency in homes, with previous support from the U.S. Environmental Protection Agency (EPA), the US Department of Housing and Urban Development’s PATH program, and the California Energy Commission’s Public Interest Energy Research (PIER) program.

Tax Credits

There are federal tax credits available, too. A tax credit can provide significant savings. It reduces the amount of income tax you have to pay. Unlike a deduction, which reduces the amount of income subject to tax, a tax credit directly reduces the tax itself. Tax credits are available for home builders, manufacturers, commercial buildings, and they are available on fuel efficient vehicles as well.

The US Department of Energy (Energy Efficiency and Renewable Energy) has a database that captures state and federal laws and incentives related to alternative fuels and vehicles, air quality, fuel efficiency, and other transportation-related topics. State-level information is updated annually after each state’s legislative session ends. To access state information on this site is simple – you just select a state from the map on the site. Federal information is updated after enacted legislation is signed into law. Select the Federal Incentives and Laws link to get the latest federal-level information.

Other References

Energy Savers Tips for Saving Money

Energy Savers in Spanish

Home Office Tips to Lower Energy Costs

Calculating Energy Savings

Women have come a long way since the days when people assumed a women-owned company was a small, home-based candle or macramé business bringing in under $10,000 a year. Today, women-owned businesses span industries and sizes, from the smallest home-based business to among the largest corporate giants.

Even with these strides, however, there are still gender-based barriers – particularly for women entrepreneurs.

SBA Resources

The Small Business Administration’s Business.gov provides a single go-to page that offers a list of resources specifically for women business-owners.

While there are many helpful links on this page, I want to point out one in particular: The Office of Women’s Business Ownership. This page, provided by the SBA, is chock-full of resources for women business owners, from success stories to grant information to a state-by-state listing of women’s business centers. This is a fantastic resource – spend some time taking advantage of all the information provided.

Making a Difference

Taking things even further, it behooves women business owners to get involved in helping all women business owners break down barriers and ensure the business playing field is fair and equal. If you want to make your voice heard, there’s the National Women’s Business Council.

The National Women’s Business Council is, according to the group, “a bi-partisan federal advisory council created to serve as an independent source of advice and policy recommendations to the President, Congress, and the U.S. Small Business Administration on economic issues of importance to women business owners.”

The group promotes women-owned business issues in both the public and private sectors.

If you want to get involved, now’s the time. The group is having a “Town Hall Meeting” in San Francisco on November 6. The goal of this meeting is for women business owners to speak directly to Council members about their priorities, challenges and concerns. During this particular meeting, women business owners are expected to discuss topics that include affordable healthcare, access to capital, procurement, taxes, education and workforce development, and micro enterprises.

For more information on this meeting, go to www.nwbc.gov.

For women specifically looking to bring their businesses into the federal contracting space – a good move in an uneasy economy – The National Women’s Business Council has an additional resource site called WomenBiz.gov. This site has a wealth of information from basic contracting first-steps to a page full of nearly 100 additional links connecting you to any kind of additional information you might need.

So, no matter what you’re looking for – to get assistance or to make more of a difference – the resources above should start you on your way.

Tracy Johnson for Business.gov

The U.S. government is the largest consumer in the country, spending nearly $589 billion each fiscal year on contracts. The government is also an omnivorous consumer, spending that money on everything from office furniture to food services to medical personnel to highly advanced technologies.

For an entrepreneur or small-business owner, the thought of entering such a large market with potentially complex rules and regulations may be too daunting.

My advice: Don’t let that fear get the better of you. It is well worth whatever time you invest. Remember – regardless of whether we’re in an up economy or a down economy, the government still must run. The government will not go out of business. The government can be your customer for life.

In fact, as a small business you have an advantage over other businesses when working with the government. The Federal government has set a goal that at least 23 percent of Federal dollars go to small businesses. Government agencies get “small business credits” for contracting with small businesses.

In the government market, being a small business can provide a significant competitive advantage.

Step One: Education

Before making any changes to your business model, read up – get educated on the government market in general. The Small Business Administration’s Business.gov provides a one-stop-shop of information on doing business with the government within its “Small Business Guide to Federal Contracting” pages.

Another comprehensive source is an eight-page downloadable guide, provided by the SBA, titled “Opening Doors to Federal Government Contracting Opportunities“. This guide debunks myths and provides real-world advice on how to get started selling your goods and services into the Federal government.

SBA also provides a free on-line course titled: “Business Opportunities: A Guide to Winning Federal Contracts“. You’ll have to register for this course, but it will be worth the time invested.

Beyond basic information, the Business.gov site also provides guidance and program information for women-owned, veteran-owned, and small and disadvantaged businesses. Fitting within one of these categories provides additional business advantages beyond simply being a small business.

Step Two: Registration

Once you’ve done your homework, the next step is the proverbial paperwork – registering your business as a potential Federal contractor. The Federal government must buy goods and services from only those companies that are officially registered as Federal contractors. There is no harm, or commitment, in registering. It simply opens the door between your company and the government.

One of the best places to get step-by-step registration instructions is the How to Register as a Federal Contractor page on the Business.gov site. Here, you’ll find you must:

1.      Obtain a D-U-N-S number: A Dun & Bradstreet D-U-N-S Number is a unique nine-digit identification number for each physical location of your business. Getting a D-U-N-S number is free for businesses interested in working with the Federal government for contracts or grants. This process is as simple as going to the Online Web Form Process page, which directs you to an online form and also provides a phone number, if you prefer to work with an actual person.

2.      Register your business with CCR: Once you’ve gotten your D-U-N-S Number, you must register your business with the Central Contractor Registration (CCR). This is simply a database of companies working with the Federal government. Your company must be in this database in order to do business with the government.

3.      Fill out the Online Representations and Certifications Application (ORCA). Here is where you provide additional information about your company and its business activities (what you sell, how you sell it, etc.)

Step Three: Getting in the Game

Once you’ve gotten through all the forms and registrations, you are – technically – able to do business with the government.

In my next entry, “Government Contracting Part II: Getting Government Business”, I’ll cover the two most important steps in actually getting your first Federal government customer: Getting onto the GSA Schedule, and finding your way to FedBizOpps.

Stay tuned … and in the meantime, read my post Tap into the Biggest Spender :: Doing Business with the Federal Government.

Tracy Johnson for Business.gov

We know business is done on the state and local level.  That’s why the Business Gateway program has been working with state and local governments in addition to Federal agencies to provide a complete resource center for your business on Business.gov.  Each month, the site promotes a “feature city” on the homepage and further provides an in depth look at doing business in that city.  State and local governments have additional and specific regulations and licenses than the Federal government, and if you are looking to open a new business or expand to a new city, knowing the local regulatory landscape is invaluable.  The current feature city on Business.gov is Montpelier, VT.

Past featured cities include:

Danbury, CT
Phoenix, AZ
Portland, OR
Madison, WI
Atlanta, GA
Richmond, VA

Coming Soon:

Reno, NC
San Diego, CA
Baton Rouge, LA
Wilmington, NC

In addition to these cities, Business.gov has over 900 pages of state and local content available through the state and local info portal.  Simply click through to your state or the state in which you wish to do business for more info.

By far, the coolest feature (according to users) on the site is the Permit Me tool.  This is the easiest way to literally get a checklist of the licenses and permits you need to do business in a particular city, state, or zip code.  Simply type in your location and select your business type and a list of Federal, state, and local regulations will be provided in priority order.

Is your business type not on the list?  Would you like your city featured in a coming month?  Tell us about it by leaving a comment or visiting www.business.gov/contact-us.

Tracy Johnson for Business.gov

Are you a disabled person considering starting a business?  Read this before you open up shop as there are government resources set-aside specifically for you!

The government recognizes that people with disabilities have specific challenges when starting a business that other small business owners may not face.  Because of this, the government has created special assistance programs to help small business owners with disabilities start, grow and manage their business.

Starting Up

Disability Info is one online resource for Americans with disabilities.  The site provides targeted resources for the self-employed and entrepreneurs.  The site points to organizations such as the APSE and Disabled Businesspersons Association for support and networking.

Commerce has a program entitled the Chamber of Commerce for Individuals with Disabilities that offer online courses and business plan wizards for disabled individuals wishing to start a home-based business.

The Department of Labor similarly offers a video training guide on self-employment for Individuals with Disabilities.  Complimentary resources include a full transcript and flow chart.

Universities often are a good resource for small business owners as well.  The University of Virginia’s START-UP USA program offers a wide variety of training seminars for free online including audio and transcripts.

Financing Your Business

Know your tax provisions!  The Equal Employment Opportunity Commission outlines all disability related tax provisions for your convenience.  Additionally, the Attorney General’s Office has compiled a “Tax Pack” as a part of the Americans with Disabilities Act including information on accessibility regulations, legal documents, and tax assistance contacts.

Most of us have a choice as to whether we want to file our taxes ourselves or seek assistance.  For a person with disabilities, often assistance in filing taxes is necessary.  The IRS has provided tax forms in Braille and Text Formats as well as a Talking Tax Form for additional assistance.

Additional Resources

There are also some very credible non-government resources recommended by Business.gov.  One of the most helpful practice for small business owners is networking, and there are several groups that bring together business owners with disabilities to discuss you specific challenges and solutions with other business owners that have been there before.  The following groups are worth joining:

• Business Leadership Network, Disability at Work
• Chamber of Commerce for Individuals with Disabilities
• Disabled Businesspersons Association
• The National AgrAbility Project

What if you are a small business owner considering hiring a disabled person? Read Small Business and Disabilities, Part II.

Tracy Johnson for Business.gov

Any successful business owner will tell you marketing your small business begins with research.  The experts can direct you to the best methods for performing research and provide you with successful strategies for market research, but a lot of the statistics and demographic information you desire can be obtained, for free, from the government.

The government collects oodles of data that is public information.  The data can be immensely useful when pulling together your marketing plan and can help you cite accurate statistics without spending a ton of money on a custom market research engagement.  These tools certainly are not a substitute for quality market research such as surveys and focus groups, but rather provide helpful data to frame that research.  For a lot of start-ups; however, the research budget is minimal.  If that is the case for your business, these stats can be leveraged to build the framework of your marketing plan.

General government Statistics

Fed Stats gathers data across over 100 agencies, states, counties, congressional districts, and cities to provide a comprehensive purview by location or by topic.

The Statistical Abstract of the United States, published since 1878, is the authoritative and comprehensive summary of statistics on the social, political, and economic organization of the United States.  The abstract is prepared by the Census Bureau, but collects data from many Federal agencies.

The Census Bureau also releases reports for business owners called the Statistics of U.S. Businesses including detailed analysis of companies, establishments, employment, and annual payroll.

Another great resource for statistics specific to small businesses is the Small Business Administration’s Office of Economic Research.  Reports from this office include:

Entrepreneurship: The Foundation for Economic Renewal in the Gulf Coast Region [PDF file] – The proceedings from the 2006 New Orleans conference include; presentation summaries, powerpoint presentations, and conference participants.

The Impact of Regulatory Costs of Small Firms (Update) – Analyzes the cost of regulations on small and large firms. This study updates two earlier reports from 1995 and 2001.

Small Business Frequently Asked Questions (FAQ) – [HTML file] – Provides answers to basic questions about small business. [PDF file] – [Text file]

Research Resources – designed as a portal to direct faculty, students, and researchers to small business data and research.

The Small Business Economy: 2007 [Research Summary] – This is an annual reference source on small business’ performance in the economy. To obtain a printed copy, see the U.S.Government Online Bookstore . (Text synopsis version) (historical versions (1996-2001) (2002-2006).

You can also subscribe to the Department of Commerce’s Stat USA subscription for updated information on federal business, trade, and economics.

Additional Resources

www.business.gov/market-research

Read Part 2 of this Series: Free Market Research, Part II :: Demographics

Tracy Johnson is a Senior Manager with ENC Marketing & Communications. She has the pleasure juggling a variety of clients from both the Information Technology and U.S. Government worlds. She brings a fresh perspective to problem solving for clients often integrating interactive marketing solutions with traditional communication methods. One of her top current clients is the Business Gateway Initiative, where she and the BG team provide marketing and outreach services for Business.gov.